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federal reserve bank OF DALLAS March 10,1945 OPERATING RATIOS OF MEMBER BANKS To Member Banks in the Eleventh Federal Reserve D istrict: We are pleased to present to you the operating ratios o f member banks in the Eleventh Federal Reserve District for the year 1944, with compara tive figures for the year 1943. In the report for 1944, the asset and liability items are averages of the amounts taken from the reports o f condition for December 31, 1943, June 30, 1944, and December 30, 1944, while the earn ings and expense items are the amounts reported by member banks for the calendar year. Because o f the continued rapid growth o f deposits in this district, many of the banks have shifted to a larger size deposit group and this fact should be taken into consideration in studying the ratios fo r the various groups. During the past year, member banks continued to add substantially to their holdings o f Government securities and in all size groups holdings of Government securities constituted a larger percentage o f total assets than in the preceding year. In most groups, the percentage o f cash assets declined further, indicating that member banks are moving toward a fuller invest ment of their assets. The earnings o f member banks generally increased further during 1944, and despite an increase in expenses, net current earn ings constituted a larger percentage of total earnings than in the preceding year. Although taxes on net incomes in all size groups increased consider ably, net profits after taxes were generally higher than in the preceding year. As in form er years, the ratios of your bank have been entered On your confidential copy to enable you to study your operations fo r the past two years and to make comparisons with the operations of other banks o f similar size. We trust that this information will be interesting and valuable to you. Sincerely yours, R. R. GILBERT President This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) O perating Ratios o f M em ber Banks for the Years 1944 and 1943 ELEVENTH FEDERAL RESERVE DISTRICT BANKS WITH AVERAGE DEPOSITS (in thousands o f dollars) 1944 Number of Banks 1943 Under $500 $500 - $9* 1944 1943 1944 L943 1944 1943 1944 1943 1944 1943 1944 1943 1944 1943 1944 1943 45 84 92 122 155 148 171 116 38 39 39 32 31 26 571 567 8.3 5.9 3.1 7.2* 6.4* 3.4 9.4 9.4 4.5 8.7* 9.1* 4.8* 12.3 11.0 4.9 92* 9.5* 4.2* 13.3 11.7 4.4 10.8* 10.0* 4.3* 16.8 12.3 4.0 9.7 8.9 2.8 13.5 10.5 3.4 11.9 10.0 4.1 13.0 10.5 3.3 11.1 9.4 3.5 12.2 10.6 4.3 9.1 8.8 4.0 1 2 3 2.9 1.0 .7 3.3* 1.0 .9 2.4 .8 .8 2.7* .8 .8 2.2 .8 .7 2.3 .7 .7 2.0 .7 .6 2.2* .6 .6 2.0 .7 .5 2.0 .6 .5 1.8 .6 .5 1.7 .5 .5 1.5 .6 .4 1.6 .5 .4 2.1 .8 .7 2.4 .7 .7 4 5 6 15.6 71.0 13.4 100.0 25.1 58.5 16.4 100.0 22.6* 60.4* 17.0 m o 7.7* *• 27.5 53.8 18.7 100.0 34.2 46.2 19.6 100.0 39.9 2.1* 129.8* 71.8* { 28.2* i -6.8* 4.6 30.4* i 37.2 1.3 27.0 65.5 34.5 + 2.8 5.4 31.9 30.0 3.9 30.3 64.2 35.8 + 3.0 9.8 29.0 44.7 34.7 20.6 100.0 5.1 2.4 31.4 3.5 32.3 67.2 32.8 + 2 .3 7.3 27.8 31.3 49.8 18.9 100.0 38.4 1.7 39.2 36.5 24.3 100.0 103 3.4 35.4 4.1 31.0 70.5 29.5 + 1 .8 4.3 27.0 49.2 31.2 19.6 100.0 39.4* 2.3* 29.6* 71.3* 28.7* + 2 .3 * 4.5 26.5* 33.6 41.4 25.0 100.0 10.8 3.0 37.9 3.3 31.9 73.1 26.9 + 3 .2 2.9 27.2 44.1 31.5 24.4 100.0 39.6 1.6 26.9 68.1 31.9 — 3.3 6.2 22.4 27.5* 51.0* 21.5* 100.0 103* 2* 37.8* 2.7* 30.3* 70.8* , 29.2* + 3 .1 4.4 27.9* 39.9 38.2 21.9 100.0 6.7 ** 14.2* 73.5* 12.3* 100.0 5 2* •* 26.4 54.7 18.9 100.0 8.5 2.6 38.6 2.6 30.6 71.8 28.2 + 4 .6 4.4 28.4 7 8 9 10 11 12 13 14 15 16 17 18 19 20 1.5 1.5 1.8 4- -1 — 1.8 — 21 22 4.0 .2 5.9 + .3 6.4 + -5 23 24 Your Bank $1,000- $1,999 $2,000- $4,999 $5,000- $9,999 $10,000-$24,999 $25,000 and Over All Groups SUMMARY RATIOS Percentage of Total Capital Accounts 1. Net current earnings............................................................... 2. Net profits after taxes.............................................................. 3. Cash dividends declared.......................................................... Percentage of Total Assets 4. Total earnings......................................................................... 5. Net current earnings................................................................ 6. Net profits after taxes............................................................. SOURCES AND DISPOSITION O F EARNINGS Percentage of Total Earnings 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Interest and dividends on securities....... ............................... Interest and discount on loans.......................................... All other earnings................................................................... Total earnings.................................................................... Service charges on deposit accounts (Included in item 9 )** Trust department earnings (Included in item 9 )* * ............. Salaries and wages........... .... 1..... ...................................... Interest on time and savings deposits.................................... All other expenses................................................................... Total expenses..................................................................... Net current earnings..................................... .......................... Net charge-offs (— ) or recoveries (-| -)................................ Taxes on net incomes............................................................. Net profits after taxes.................................... ........................ 100.0 100.0 8.1 •• -1 30.9 + 7.1 5.0 33.0 \ RATES OF EARNINGS ON LOANS AND SECURITIES Percentage of Total Securities 21. Interest and dividends on securities....................... .............. 22. Net losses (— ) or recoveries and profits ( + ) on securities........ 2.1 + 1.9 2.2 — + 8.2* .6 + 1.2 .1 9J8 ** 27.3* 54.0* 18.7* 100.0 8.8* .2* 39.5* 2.3 30.3* 72.1* 27.9* + 6 .5 4.0* 30.4* 1.8 i 1.9 35.6 2.0 28.1 65.7 34.3 + 1.7 4.9 31.1 1.7 1.9 — — — 10.0 ** — 10.5 2.8 34.1 2.9 27.3 64.3 35.7 — .5 6.8 28.4 1.7 1.6* — — .1 6.1* .6* + 9.0 3.7 32.8 4.0 29.7 66.5 33.5 + 5.9 27.7 1.7 5.9 2.0 93 3.4 36.2 2.1 28.0 66.3 33.7 + 2.3 5.6 30.4 1.6 — — .2 1.5* — .1 4- 5.9 .3 4.4 4- .2 4.7 4- -5 + 45.1 4.2 15.3 34.1 1.2 .1 39.2 5.2 15.2 39.1 1.2 .1 49.2 2.1 14.6 33.0 1.0 .1 43.7 3.3 14.4 37.0 1.4 2 33.0 4.2 22.5 39.4 .8 .1 26.5 6.2 23.6 42.5 1.1 .1 25 26 27 29 28 30 5.0 31.1 5.3 10.0 5.1 27.9 5.4 10.6 4.3 27.4 4.5 9.3 4.7 27.8 4.9 8.0 6.8 31.0 7.5 4.4 8.5 31.7 9.6 5.4 31 32 33 34 Percentage of Total Loans 23. Earnings on loans................. .......................................... ............... 24. Net losses (— ) or recoveries ( + ) on loans................................ 7.5 — .3 + 6.8 1 7.1* H- .5 + 6.1 -2 + 6.6* .5 + 5.5 *2 + 5.8 .3 + 3.6 .8 + DISTRIBUTIONS OF TO TA L ASSETS Percentage of Total Assets 25. 26. 27. 28. 29. 30. Government securities..................................................................... Other securities................................................................................ Loans.......... ...... ............... .............................................................. Cash assets....................................................................................... Real estate assets............................................................................. All other assets........................ - ........ ............................................. 19.4 2.3 32.6 44.8 .8 .1 16.7 3.9 33.7 44.2 1.3 .2 27.2 3.9 26.1 42.1 .7 12.1 42.2 14.2 2.9 14.5 43.4 17.3 4.1 9.0 37.2 10.1 — 22.8 6.2 26.3 43.6 1.0 .1 29.9 4.4 24.9 40.0 .7 .1 25.4 7.6 23.2 42.5 1.0 .3 35.5 4.9 20.3 38.6 .7 40.0 5.6 15.4 38.3 .7 — 28.6 6.8 21.3 42.3 1.0 — — 34.1 6.6 15.5 42.4 1.3 .1 9.7 33.0 10.9 4.1 , 6.8 28.8 7.9 29.8 8.7 4.4 5.6 27.5 6.0 3.9 6.4 26.1 6.9 5.6 5.1 29.6 5.4 8.4 6.3 32.5 6.8 9.0 CAPITAL AND DEPOSIT RATIOS (In Percentage) 31. 32. 33. 34. Capital accounts to total assets........................................................ Capital accounts to total assets less Governments and cash assets. Capital accounts to total deposits.............................................-..... Time to total deposits..................................................................... 1 \ 7-4 2.8 t________ •Revised. "i ••Banks reporting zero amounts were excluded in computing this average and figures are not shown where there were fewer than three banks in a group. N ote: Balance sheet figures used as a basis for ratios are averages of amounts reported December 31, 1943, June 30, 1944, and December 30, 1944.